(Anti-theft, send later.) Abstract: With the advancent of technology and the model of intelligent network coverage, the ergence of the ga industry in recent years has been witnessed by the public. The way gas are disseminated no longer adheres to rigid promotional thods, and the influence of gas has gradually expanded to various aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and improve performance in line with the rapid developnt of the tis. The diversification strategy perfectly ets the planning needs and developnt goals within the ga industry. Under the backdrop of economic globalization, the diversification strategy, as a preferred developnt model for enterprises, is also applicable to ga companies. This article, using Sanqi Mutual Entertainnt Company as an example, explains the impact of diversification strategy on the performance of ga companies.
Keywords: diversification strategy; ga company; performance; impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic ans adopted by enterprises in the operation process to capture new markets and open up new market areas. It is also a strategic plan that enterprises use to avoid risks encountered in the operation of a single business and to enter new business fields with targeted preparation. The practical application of the diversification strategy in ga companies can effectively improve company performance and bring about a process of transformation from quantitative to qualitative change in the developnt of ga companies.
1. The macro background of diversification strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives returned to normal, and the economy and culture presented a thriving recovery scenario. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry basically returned to the pre-pandemic level [1]. This is very favorable news for the ga industry, which holds a large proportion within the cultural industry. Although the arrival of the pandemic did not cause significant impact to the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. The recovery of the cultural industry ans that for most ga companies, the great developnt and prosperity of the cultural industry can promote and drive more ga companies to embark on a path of continuous developnt [2].
From last year's pandemic outbreak to the current pandemic stabilization, the state has promulgated relevant policies from various aspects such as finance, system, and insurance to support the developnt of cultural industries. Although the pandemic has blocked people's travel, it cannot control the spreading speed of the online network. More and more new dia have erged, driving the developnt of cultural industries during the pandemic prevention period. However, due to each company wanting to squeeze into the online market, the competition environnt within cultural industries has beco very fierce. Nurous traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. But within these short two years, several successfully transford cultural industries have erged. These enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrading, harvesting significant gains during the period when residents' consumption levels significantly increased during pandemic prevention, obtaining more diversified developnt models and fund inco channels. For example, the transformation undertaken by Sanqi Mutual Entertainnt Ga Company during pandemic prevention is worth learning from by most ga companies [3].
2. Brief analysis and classification of diversification strategy
(1) Brief analysis of diversification strategy
Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent, in his book "Corporate Strategy: An Analytic Approach to Business Policy for Growth and Expansion" that ntioned the classification of diversification strategies. This globally influential strategic model is involved in managent policies across various countries, resulting in every enterprise, large or small, seeking a place according to the developnt model of diversification strategy today [4].
(2) Classification and aning of diversification strategy
Diversification strategy is classified into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different modes derived from diversification strategy also have varied anings. Horizontal diversification refers to enterprises utilizing the original conditions provided by the market to produce new products that can et new user needs, thereby driving market consumption; vertical integration is when enterprises vertically derive according to their developnt situation, infiltrating product industry chains into other market fields to seek new consur targets; concentric diversification focuses more on innovation of original technology, requiring the production of new products within the original production range, realizing transformation through the tamorphosis of original technology; overall diversification emphasizes expanding operational range changes, requiring enterprises to link relevant factors such as raw materials, technology, and market associated with their products to expand the operational range [5].
3. Impact of diversification strategy on the performance of ga companies
It can be said that in the operational process of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in operational mode and shifts in strategic planning. These two parts' transformations gradually produce effects that drive the improvent of company performance. The impacts brought by diversification strategy are multifaceted. This paper will analyze and study the impact of diversification strategy on the performance of ga companies, using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Changes in operational mode
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very broad, which is an advantage brought by the diversification strategy. The company's business not only involves interactive entertainnt operation but also covers the research and distribution of mobile gas and web gas. In recent years, keeping up with technological advancents, Sanqi Mutual Entertainnt Ga Company has continuously innovated, expanding the market layout to film and television, ani, and the second-dinsional industries. It has also shaped its own market cultural industry chain within music, VR technology, and various entertainnt businesses such as live streaming.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but the early developnt road was not smooth. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise, which initially did not involve ga or entertainnt industry operations in its industrial chain, always being at risk of market annexation. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011, but with subsequent operational mishaps and market tightening, Sanqi Mutual Entertainnt eventually could not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with a sixty percent equity acquisition. Despite nominal acquisition, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. Through multi-party cooperation, the two companies completed the asset restructuring of various industries. It is worth ntioning that the strategic plan consistently operated by Sanqi Mutual Entertainnt has already begun to show prominence at this ti, transforming from a single modern cultural creative company before the acquisition to today's dual-main business listed company of advanced manufacturing and modern cultural creative, corresponding to changes occurring in Sanqi Mutual Entertainnt's company operating strategy, with the original scope of business covered by the cultural creative industry.
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